NPV Calculate the net present value (NPV) for a 15-year project with an initial investment of $20,000 and a cash inflow of $4,000 per year. Assume that the firm has an opportunity cost of 17%. Comment on the acceptability of the project. The project's net present value is $ (Round to the nearest cent.) Is the project acceptable? (Select the best answer below.)

NPV Calculate the net present value (NPV) for a 15-year project with an initial investment of $20,000 and a cash inflow of $4,000 per year. Assume that the firm has an opportunity cost of 17%. Comment on the acceptability of the project. The project's net present value is $ (Round to the nearest cent.) Is the project acceptable? (Select the best answer below.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 1P

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